Case studies - unfair contract terms

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Victoria introduced the first unfair contract terms legislation in Australia on 9 October 2003.

This led to the removal of unfair contract terms from contracts used in several industries. Victoria's laws formed the basis of national unfair contract terms legislation, which came into force on 1 July 2010.

The Australian Consumer Law bans businesses from proposing, using, or relying on unfair contract terms in standard form contracts with consumers and small businesses. Penalties can be as high as:

  • $50 million for businesses
  • $2.5 million for individuals.

The following case studies show how the law was applied in Victoria.